Why is race and nationality ignored so much in the lore? (why does the lore fail)

[Vesperia]

I'm quite sure that "people" from Bethesda, CDProjekt, Bioware and, mind you, even Square Enix, understand the videogame medium quite a lot better than you.

If they emphasise scrolling text-walls over interactivity, then no, they don't understand the medium.